That's where job opportunities are, and that's why more housing will increase the opportunities, and then the price of housing...
People can work from nearby towns where housing costs are relatively moderate and just hit the head office in Lisbon one or two times a week.
Corporations and people need to adapt to the changing circumstances and to be open to make the necessary adjustments to advance in this world.
This is the exact way that janitors and baristas and everyone servicing those 100k+ a year software engineers is priced out.